Stamp duty concessions hit the mark with first home buyers
Government incentives to woo first home buyers are proving effective.
Data from the Australian Bureau of Statistics shows first home buyers coming back to the market in some parts of the country. The Housing Industry Association (HIA) has pointed to first home buyer incentives as the reason behind the increase.
HIA principal economist Tim Reardon said stamp duty concessions were drawing first home buyers into certain markets.
“First home buyers are returning to the market in NSW and Victoria off the back of enhanced stamp duty concessions in these markets. In July 2017, the first month that these concessions took effect, the volume of first home buyers in NSW jumped to its highest level since 2012, increasing their share of the market from 8.8% to 11.5% in just one month based on today’s ABS finance figures,” Reardon said.
Reardon first home buyer incentives in Victoria had seen the proportion of first home buyers in the market grow by 18.8% to their highest level in four years.
“These policy interventions have driven a dramatic increase in the involvement of first home buyers in the market. Government policy decisions drive consumer behaviour in the housing market. Improvements to first home buyer incentives have provided a significant impact on the market,” Reardon said.
But Reardon pointed to regulatory changes meant to curb investor lending, claiming that these restrictions along with “punitive” taxes had seen investor lending fall by 3.9%.